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As a primary charter guest, you might be interested to learn that there are a number of perks in securing a charter yacht that holds this certificate. Read on to learn about Greek Charter Licenses (GCL) and how they can benefit you on your next yacht charter in Greece.
Greek yacht charters have become increasingly popular over the years, and it’s clear to see why. Boasting year-round sunshine, a wealth of historical monuments and UNESCO World Heritage sites, world-class beaches, astonishing scenic beauty, and renowned warm Greek hospitality, it’s no wonder the region has become one of the most popular yacht charter destinations on the planet.
As a result of increasing competition from foreign-flagged vessels conducting commercial charters in Greece, the Greek authorities decided to impose new measures in order to assert greater control over who could charter in their waters, thereby protecting their own commercial fleet.
In November 2017, the Greek parliament passed a new law introducing significant changes to the commercial charter sector, ending old cabotage rules and giving rise to the Greek Charter Licence.
The rules state that owners of EU-flagged yachts, and non-EU-flagged yachts over 35 meters, wishing to conduct commercial yacht charters in Greece must now hold a Greek Charter Licence.
In order to procure a licence for the yacht, the owner must first jump through several hoops, including;
- Securing a foreign commercial yacht inspection certificate
- Applying for VAT exemption and trading as a Greek licensed foreign-flag commercial yacht
- Obtaining a Greek Tax Identification Number
- Establishing a tangible presence in Greece - unlike the e-Charter Permission routes detailed below, the GCL requires the owning entity to maintain a verifiable commercial presence within the country, typically fulfilled through a local charter management company
The yacht must also conduct a number of commercial charters in Greek waters, calculated by a predetermined number of days over a three-year period, which decreases in line with the age of the yacht.
Once they have successfully completed the process, which can take roughly between one and two months, they will be granted a three-year licence, subject to conditions.
As a charterer, there a number of benefits that you can enjoy when you rent a yacht with a Greek Charter Licence for cruising around Greece, chiefly;
- Reduced VAT (see below)
- Free embarkation and disembarkation from any Greek port
- Fuel is either purchased duty-free or net of VAT/local taxes
- Freedom to cruise anywhere within Greek waters (with no formalities required)
Once set at 24%, the VAT rate in Greece was temporarily reduced to 13% in June 2020 under "services of transport of people and their luggage", for all yachts over 24 meters cruising exclusively within Greek waters. But since December 2023, this temporary measure became permanent by Law 5073/2023.
For voyages that include time spent in international waters, VAT is calculated based on the following;
- For yachts cruising international waters without approaching port, the VAT discount is 60% (payable at a rate of 5.2% of the yacht’s base charter fee)
- For yachts that depart from a Greek port and conduct long navigations, the VAT discount is 50% (payable at a rate of 6.5% of the yacht’s base charter fee)
- For yachts that depart from a Greek port and conduct short navigations, the VAT discount is 40% (payable at a rate of 7.8% of the yacht’s base charter fee)
- For yachts that spend any time in coastal international waters, the VAT discount is 30% (payable at a rate of 9.6% of the yacht’s base charter fee)
Overall, these discounts can equate to a substantial saving for charter guests, and coupled with the spectacular cruising grounds on offer in Greece, you can start to see why yachts that carry a Greek Charter License hold massive appeal.
In December 2023, the Greek Ministry of Shipping and Island Policy launched the e-Charter Permission platform, a digital system designed to open Greek waters to foreign-flagged yachts for the first time without the need for a full Greek Charter Licence.
The system is available to commercially registered, foreign-flagged yachts over 35 meters LOA with non-wooden hulls (GRP, steel, or aluminium). No permanent establishment or branch office in Greece is required; the chartering of the yacht is the only commercial act the owning entity needs to carry out within Greek territory, though VAT registration in Greece is recommended to facilitate payment of applicable charter taxes.
There are two distinct permission types, each designed for different Greece yacht charter itinerary structures:
- e-Charter Permission - For charters that begin and end entirely within Greek waters. A maximum of 21 days per calendar year applies, extendable by a further 7 days, allowing up to 28 charter days annually. A separate permission must be issued for each individual charter.
- e-Charter Permission Plus - For yacht charters that begin or conclude outside of Greece. This covers Mediterranean yacht charter itineraries where guests embark in Greece and disembark abroad, or vice versa, with no limitation on the number of times a yacht enters or exits Greek waters.
In both cases, a Greek Foreign Commercial Yacht Inspection Certificate (PEXEPA) is required, and a class surveyor authorised by the Greek authorities must inspect the yacht prior to the permit being granted. Owners should factor in survey lead times, particularly for yachts intending to operate in Greece during the summer season.
A note on VAT: The VAT rate applicable under the e-Charter Permission is determined by the yacht's PEXEPA certification category. Yachts certified for international voyages are subject to a rate of 5.2%, while those limited to domestic voyages are subject to 6.5%. In addition to VAT, a Special Charter Fee (TEPADACH) is payable to the Greek authorities, calculated on the basis of the yacht's gross tonnage and the number of charter days, with a base fee of €500. A minimum of 70% of VAT and the TEPADACH fee in full must be paid prior to the charter commencing.
In a nutshell, yes, provided the yacht charter starts and ends in international waters, such as in the charter routes of Italy or Albania for charterers wishing to incorporate the Ionian Islands, or Turkey for East Mediterranean charter itineraries that include the Aegean archipelagos.
In this case, the yacht is not required to hold a Greek Charter Licence or e-Charter Permit, but will be liable to VAT in the country of embarkation.
Please note that the rules regarding VAT, permits, and itineraries incorporating travel outside of Greek waters are continually evolving. We advise that you speak with your yacht charter broker for further clarification before you travel.
To learn more about travelling in Greece on your luxury yacht charter, please read the comprehensive YachtCharterFleet Greece yacht charter destination guide, which offers lots of useful information and tips.
For any further information about booking or chartering a luxury yacht, please take a look at our comprehensive advice guides and reach out to your preferred yacht charter broker for the latest special offers and up-to-date availability.
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